Honda expanding car and two-wheeler production in India

Japanese automobile giant Honda is making a big push in the Indian market, expanding production of both four wheelers and two wheelers through fresh investments. Honda is expanding capacity at its Rajasthan car plant while Honda Motorcycle & Scooter India Pvt Ltd is creating additional capacity at its Narsapura plant in Karnataka'

Honda Cars India Limited (HCIL) today announced that it will invest Rs380 crore in its Tapukara plant in Alwar district of Rajasthan, to expand the annual production capacity of the plant from the current 1,20,000 units to 1,80,000 units per annum. The additional capacity is scheduled to be ready by middle of 2016. 

Honda Motorcycle and Scooter India Pvt Ltd, the 100 per cent subsidiary of Honda Motor Company, on Thursday said it is expanding capacity at its Narsapura plant in Karnataka by an additional 6 lakh units. The Narsapura plant is Honda Motorcycle's third two-wheeler production plant in India.

This expansion, which entails fresh investment of Rs585 crore, would take Honda's combined annual two-wheeler production capacity to 6.4 million units before end of 2016.

The expansion of the second car plant will increase HCIL's overall annual production capacity from the current 240,000 units to 300,000 units, including the 120,000-unit capacity of the first plant in Greater Noida.

Honda said the four wheeler capacity expansion will generate fresh employment of about 600 people in Tapukara plant.

HCIL said the company witnessed 44 per cent growth in its domestic sales during April-February 2014–15, selling 166,366 units against 115,913 units sold in the corresponding period in FY2013-14. 

Driven by strong sales momentum for its cars, India has emerged as a very important market for Honda and holds great potential for future growth as well.

With new models such as Amaze, 4th Generation City and Mobilio, Hona has been maintaining strong sales in India.